New Delhi: India's sugar industry is seeing a significant loss in production for the current sugar season year 2025 (SSY25), with overall output predicted to drop below 27 million metric tons (MMT), a significant decrease from 31.8 MMT the previous year, according to a Centrum research.
Sugar production is 19.77 MMT as of February 15, 2025, which is 12 per cent less than it was during the same time last season. Lower recovery levels, decreased cane supply, and increased sugar diversion for ethanol production are the primary causes of this decline.
Maharashtra is the state most affected, with sugar production down 14 per cent year over year, according to the state-level data. Uttar Pradesh had a decline of 8 per cent, while Karnataka saw a decline of 13 per cent.
Notably, during the past two weeks, Karnataka's cane supply has decreased by 22 per cent year over year, which has resulted in a significant drop in crushing volumes. In contrast to Maharashtra, where cane availability decreased 7.8 per cent year over year, Uttar Pradesh saw a seasonally constant 1.4 per cent gain.
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A number of mills have been forced to stop crushing operations earlier than anticipated due to the diminishing availability of cane. As of February 15, 51 mills have ceased operations, up from 23 on January 31. In SSY25, the total amount of sugarcane crushed decreased to 218 MMT, a 4.5 per cent decrease from 228 MMT in the previous season.
The government reverted the price increase for Food Corporation of India (FCI) rice, bringing it down to Rs 22.5/kg in a recent policy update.
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